MBA402: Sustainability Assessment Report for Timberwell Construction

This report assesses the sustainability practices of Timberwell Construction, a fictional company, based on the GRI Sustainability Reporting Standards. The report analyzes economic sustainability, including financial implications of climate change, incidents of corruption, and anti-competitive behavior. It further evaluates environmental sustainability, focusing on energy consumption, impacts on biodiversity, and compliance with environmental regulations. Finally, the report examines social sustainability, addressing employee hiring policies, discrimination issues, and community engagement. Each section provides an overview of Timberwell Construction's performance against the GRI disclosures, along with recommendations for improvement. The assessment highlights areas where the company faces challenges and suggests strategies to enhance its overall sustainability performance, adhering to the principles of the GRI standards.

Running head: GOVERNANCE AND SUSTAINABILITY
Governance and sustainability
Name of the student
Name of the university
Author note

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Table of Contents
Introduction......................................................................................................................................2
Economic sustainability...................................................................................................................2
Disclosure 201-2..........................................................................................................................3
Disclosure 205-3..........................................................................................................................3
Disclosure 206-1..........................................................................................................................4
Environmental sustainability...........................................................................................................5
Disclosure 302-1..........................................................................................................................5
Disclosure 304-2..........................................................................................................................6
Disclosure 307-1..........................................................................................................................6
Social sustainability.........................................................................................................................7
Disclosure 401-1..........................................................................................................................7
Disclosure 406-1..........................................................................................................................8
Disclosure 413-1..........................................................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
Sustainability reporting is one of major and integral parts of the business activities in the
current time. This is due to the reason that market awareness regarding sustainability got
increased from the last few years and sustainable companies are getting more preferences among
the customers. In addition, with the stringent regulations and standards in place from the both the
governments and the United Nations, it is getting more important and urgent for the modern day
business organizations to have the effective mechanism of sustainability reporting. In this case, it
is ideal to use the GRI sustainability standards for reporting (Fernandez-Feijoo, Romero and
Ruiz 2014). There are different elements that should be followed in the GRI standards and
reporting should be done as per each of the business activities. Majorly, the GRI standards are
having three elements, economical, social and environmental as per the triple bottom line
approach (Fonseca, McAllister and Fitzpatrick 2014).
In the given case, it is identified that Timberwell Construction is facing number of
unethical and sustainability related issues in their business operations. This includes
environmental factors, business factors and human resource factors. This report will discuss
about each of the issues being faced by Timberwell Construction from the perspective of the GRI
sustainability reporting. Each of the disclosures of the GRI reporting plan will be discussed and
recommended actions will also be given.
Economic sustainability
Economical factors refer to the business and operations related issues faced by
Timberwell Construction such as the financial implications and other risks. There are three
disclosures are associated with the economical sustainability and they are disclosure 201-2,

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disclosure 205-3 and disclosure 206-1. The following sections will discuss about each of these
disclosures from the perspective of Timberwell Construction.
Disclosure 201-2
This disclosure states about the financial implications and others factors related to the
change in climate. In terms of the business operation of Timberwell Construction, they are not
facing any direct impacts from the climate change but indirect impacts are evident. For instance,
with the change in the climate, the supply of the resources for Timberwell Construction will get
reduced with the impacts on their production (Siew 2015). In addition, the climate change will
also restrict the potential customers to buy home in a certain location if the climate conditions are
not acceptable enough. However, on other hand, it is also identified that Timberwell
Construction will face opportunities also from the climate change. This is because of the fact that
climate change will reduce the productive land for forestation and agricultural activities and
availability of the vacant land will be more for Timberwell Construction (Hahn and Lulfs 2014).
Hence, it is recommended that Timberwell Construction should maintain the list of financial
implications that they are going to face from the climate change including direct and indirect
factors. In addition, it should also be noted by Timberwell Construction that they will also face
legal issues from the climate change because if the direct involvement of them is detected in the
climate change, then they will face legal consequences (Buhr, Gray and Milne 2014). This is
another major risk that should be considered.
Disclosure 205-3
This disclosure states about the incidents of corruption and actions initiated accordingly.
1098207 have faced a few issues of corruption and unethical activities. For instance, their few

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executives are involved in public scandal to gain preferences from the council body for
sanctioning their development applications. It is identified that the five employees of Timberwell
Construction and their contracted two external consultants bribed the council project managers to
get the preferences. Each of the involved stakeholders is charged by the state corruption
commission (Godha and Jain 2015). It is also identified that Timberwell Construction have
suspended all these involved stakeholders and terminated the contracts with the consultants in
charge of corruption. Thus, it can be concluded that proper and suitable actions have been taken
by Timberwell Construction by detaching the accused ones from the business interests. However,
it should also be ensured that future business activities will be proofed from this corruption
charge. The involved stakeholders in the business process of Timberwell Construction should be
communicated and trained to make them aware about the potential consequences (Alazzani and
Wan-Hussin 2013). Proactive approach of sustainability should also be ensured apart from the
reactive approach by them.
Disclosure 206-1
This disclosure states about the legal actions for anti competitive behavior and antitrust
issues. Monopoly practices are also included. In the case of Timberwell Construction, they are
accused for anti competitive behavior by leveraging on their market power and influences. This
is due to the reason that Timberwell Construction is accused for pressuring the suppliers in not
getting in to a contract with a new emerging competitor (James 2013). This is done in view of
creating barriers for the competing firm and to demoralize them from entering in this sector. The
suppliers being much depended on the Timberwell Construction for their revenue got no other
chance. In this case, the federal Court ordered Timberwell Construction to withdraw this act of
coercion on immediate effect from the external partners. There are no direct accusation regarding

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the antirust issue being faced by Timberwell Construction but their detected unethical activities
have created the same. This is due to the reason that the goodwill and positive word of mouth for
Timberwell Construction got affected among the external stakeholders and they are having trust
issues with the brand (Goswami and Lodhia 2014). Monopoly practices are identified where they
have coerced the suppliers in not having the contract with their competing firm. Thus, as per this
disclosure, there are multiple issues being faced by Timberwell Construction.
Environmental sustainability
Environmental sustainability refers to the elements or factors related to the impacts on the
environment due to the business activities. The following sections will discuss about each of the
attached disclosures with it.
Disclosure 302-1
This disclosure is about the energy consumption by the certain organization. It is
identified that Timberwell Construction communicates about the extensive usages of renewable
sources of energy in their business operation. According to the gathered information, it is
identified that Timberwell Construction is sourcing their energy majorly from the renewable
sources followed by the non renewable sources (Pérez‐López, Moreno‐Romero and Barkemeyer
2015). As per the calculations, 1.0 gigajoules of renewable sources are consumed followed by
the 0.5 gigajoules of non renewable sources. It is also stated by Timberwell Construction that
they will source minimum 50 percent of the fuel consumption from the renewable sources from
the next three years. Thus, it can be concluded that extensive approach is initiated. However, it is
suggested that sustainability should be followed in the daily operations of Timberwell
Construction. This includes the reduction in the overall energy consumption (Grossi et al. 2015).

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Sourcing from multiple energy streams will not be effective till the average consumption rate
cannot get reduced.
Disclosure 304-2
This is about the significant implications of the business activities on the biodiversity.
Timberwell Construction is accused in this case because it is detected that they cleared off more
than 0.45 hectares of endangered and ecological coastal grasslands for their business activities.
In addition, Timberwell Construction is also accused for damaging the biodiversity because the
particular grassland area was home to the endangered flora and fauna. It is sentenced to them that
Timberwell Construction should initiate a rehabilitation program at the cost of minimum
$440000 as the compensation of the loss to biodiversity. On the other hand, it should also be
noted that Timberwell Construction is already initiated a few actions such as conservation of the
wallum sedge frogs that are identified to have home in the Otford Park site of Timberwell
Construction (Yadava and Sinha 2016). They are working with the Stanwell council in managing
the sustainable development of the biodiversity. Timberwell Construction is also working as per
the LEP amendments to ensure the prevention of bushfire in the region. It is recommended that
Timberwell Construction should maintain the alignment in approach with the state council in
managing the biodiversity and prevent the future occurrence of these issues.
Disclosure 307-1
This disclosure states about the business activities, which are not compliant with the
environmental laws and regulations. There number of activities of Timberwell Construction
identified, which are not compliant with the environmental standards and regulations. For
instance, the damage on the 0.45 hectares of grasslands is against the environmental regulations.

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In addition, the development projects of Timberwell Construction are also not compliant with
each of the environmental standards and regulations. However, on the other hand, there are
different activities and initiatives being taken by Timberwell Construction in the complying with
the regulations and standards (Greiling and Grub 2014). For example, they are complying with
the Stanwell district council to rezone their developments site due to the fact that this site is
recognized as bushfire prone area under the LEP agreement. This will cast Timberwell
Construction more than $4 million (Jones and Mucha 2014). It is also suggested that Timberwell
Construction should align their business activities along with the environmental regulations from
the very first stage. This will ensure that any types of unwarranted incidents can be avoided.
Social sustainability
Social sustainability refers to the management of the stakeholders involved with the
business. If the internal and external stakeholders can be managed well, then it will be beneficial
for the business to gain the long term viability in terms of internal management.
Disclosure 401-1
It is about the hiring policy of the new employees and the level of employee turnover. In
the case of Timberwell Construction, it is identified that gender diversity in the workforce is not
being maintained by them because as per the available information, all the 58 employees are
male. In addition, it is also identified that employee turnover rate is also high because already 17
employees left the firm and 12 new employees have been employed again. The 17 employees left
to work for the rival entities of Timberwell Construction, which denotes the fact that Timberwell
Construction is trailing behind in terms of employee management and benefits compared to their
competitors (del Mar Alonso‐Almeida, Llach and Marimon 2014). The hiring policy of new

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employees in Timberwell Construction is also not ideal and effective because diversity is not
maintained and right employees with right skills are not employed, which is also contributing in
increasing trend of employee turnover. Hence, it is recommended that Timberwell Construction
should change their existing hiring policy and promote diversity in the organization. The more
will be the diversity, the more will be ethical principles to be followed in the internal
management.
Disclosure 406-1
Discrimination is also identified in the management of the employees because one of the
employees of Timberwell Construction named Dennis McCabe complained about the
discriminatory behavior faced by him due to his relatively old age compared to his colleagues.
He complained against Timberwell Construction to the fair work commission (Hughen, Lulseged
and Upton 2014). It is ordered to Timberwell Construction that they should pay Dennis McCabe
$4400 in compensation. In addition, it is also ordered that Timberwell Construction should
review and update their existing anti discrimination policy and train the employees accordingly
to prevent the future occurrences.
Disclosure 413-1
This disclosure states about the engagement with the local communities and initiation of
the development activities. In the case of Timberwell Construction, it is identified that they have
started extensive public relation campaign to engage with the external stakeholders. For example,
they have initiated environmental impact assessment to communicate the communities about the
potential impacts from their business activities (Ramos et al. 2013). In addition, developments
programs are of Timberwell Construction are also getting designed according to the need of the

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communities of affordable social housing. These activities are helping Timberwell Construction
in getting connected with the local communities and gaining goodwill and positive word of
mouth.
Conclusion
This report concludes that there are number of areas of improvement still to be worked by
Timberwell Construction. There is each of the disclosures of GRI sustainability reporting
discussed in this report and probable recommendations are also given. It is identified that
Timberwell Construction is majorly facing the issues from the side of environmental
sustainability. It is recommended in this report that Timberwell Construction should partner with
the state council in preventing the emergence of unethical and unwarranted incidents in the
future. Effectively following all the disclosures discussed here will help Timberwell
Construction to gain the highest long term business sustainability.

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